fieldofuse

Field of use is a contractual concept used in licensing agreements to limit the permitted applications of a patented invention, know-how, or software. The clause specifies the particular purposes, industries, indications, or market segments in which the licensed technology may be exploited. In practice the term is often written as field of use; some documents may use fieldofuse as a concatenated form.

Scope and structure: The field of use can be product- or indication-specific (for example, use in treating a particular disease), industry-specific (such as licensing a device only for ophthalmology), or time- and territory-limited. Licenses can be exclusive within a defined field or non-exclusive, and may include sublicensing rights restricted to the field. Some agreements separate the field of use from other license metrics, such as royalty rates or milestone payments.

Rationale and implications: Field of use helps licensors protect broader IP assets while enabling targeted commercialization. It can help licensees enter a market with clear rights and encourage investment. However, poorly defined fields can generate disputes over scope, and excessive restrictions may raise competition concerns in some jurisdictions. Clarity and objective criteria are important, often including explicit examples and definitions.

Enforcement and negotiation: Parties typically define what constitutes within-field activities and what constitutes outside-field activities, and may specify carve-outs for research, evaluation, or internal use. Changes to the field usually require amendment or consent. Field of use is commonly used in pharmaceuticals, biotechnology, software, and technology licensing to balance control with commercial flexibility.

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